Haggen Employees Numb and Mum

With their future income uncertain, employees at the Haggen grocery store in South Laguna are saying they’re numb, stunned and angry about what they called a “rude awakening.” A spokesperson said Tuesday the store will close by Nov. 24, just eight months after the ownership change.

Haggen, Inc., grocery store chain sought bankruptcy court protection last month and recently announced plans to close 127 of the 146 stores it bought from Albertsons and Safeway after their merger, a Haggen spokesperson said Tuesday. Of those stores, 83 are in California. Haggen also owns stores in Nevada, Oregon, Washington and Arizona.

“I’ve seen it all but I’ve never seen it collapse like this,” said one South Laguna store employee with a 30-plus-year career in the grocery business. “They didn’t price properly.”

Requesting anonymity, he said Haggen expanded too fast with prices that were 20 to 30 percent higher than Albertsons, which formerly occupied the store at 30922 Coast Highway in the Aliso Creek Shopping Center. Previous owners included defunct supermarket chains Lucky and Alpha Beta. “They could have put their big-boy pants on and lowered the prices. They bit off way more than they could chew.”

Another employee, who also declined to be identified, called it a “rude awakening” and “a sensitive subject.”

Haggen, headquartered in Bellingham, Wash., is suing Albertsons for $1 billion, accusing the seller of “commercial sabotage,” said the Haggen spokesperson. Most of the locations that are closing were formerly Albertsons, Vons, Pavilions and Safeway stores purchased in 2014. The company stated it will refocus on its 37 Pacific Northwest stores.

Of the five employees questioned at the South Laguna store, all requested anonymity and most said they were reapplying to work at Albertsons. The Federal Trade Commission lifted a yearlong ban last Friday, Sept. 25, that prevented Albertsons from hiring Haggen employees. The ban was initiated by Haggen in its deal with Albertsons to ensure the continuity of a knowledgeable staff, according to reports.

But disgruntlement runs beyond job security. “I’m on high-blood pressure medication,” stated a checker. Because the chain declared bankruptcy, she said she can’t claim $4,000 she’s accumulated in vacation pay. “I can’t pay my property taxes or my dog’s vet bill.” Vacations will be honored if they were already scheduled, said the spokesperson, who was uncertain about disbursement of accumulated vacation pay.

Haggen promoted a hometown farmers’ market, which prompted an expectation of lower prices, said Sandy Nealon, who lives nearby and regularly shopped at Haggen. She noticed early on that prices were pricey.

Resident Ann Doty shopped there once. “I decided it wasn’t for me,” she said. “It was expensive. I had heard cheap and organic. I saw some organic but I didn’t seen any more organic than usual.”

Employees said they’ve heard rumors about potential successors, including Sprouts Farmers Market and Trader Joe’s. A Haggen spokesperson declined comment on future ownership due to the pending litigation.